THE BACON INDUSTRY.

Taranaki Daily News, 27 October 1921, Page 5

THE BACON INDUSTRY.

NEED OF CO-OPERATION. FARMERS’ HELP WANTED. Facts relating to the bacon indusfryi and some present aspects of this busi-* ness were dealt with by Mr. H. of Palmerston North, representative ofi the New Zealand Meat Packing Company (Co-op.), Ltd., in an address at Omata last evening. The general manager of the Company (Mr. S. G. Baron), who was to have given an address, was unable to be present. Mr. J. A. Kurth was voted to the chair.

In his opening remarks, Mr. Burke said they wanted the farmer to look upon the pig as the one bright asset left at present. He remarked that according to a recent report lamb was down to 7d per lb., which meant that the farmer received about 3d. Freight cost nearly 4d, and this was one of the hurdles that did not have to be met with in the bacon industry, as 99 pci* cent of the pigs killed in New Zealand wer® consumed in the Dominion. It was a self-contained industry, and the farmcjE should give it more support to put the business on a sound footing. Referring to his company’s position, Mr. Burke said that they had kept going fairly well, but it was not their fault that better results were not achieved. The remedy of many ot these trials and troubles was loyalty, on the part of the fanner. Some months ago pigs, after going up fronu 7a to lid per lb., went tumbling down to 6d. There was a hue and cry as to what the bacon companies were doing, and the farmers did not stop to think that lid per lb was only a, price and should never have been paid. A drop had to be expected sooner or later, but it came quicker than was anticipated through the action of the opponents of his company, and he believed that in 1917, had it not been for, the amalgamation of several co-operat-ive companies, the farmer probably would have received about 2d per lb. Mr. Burke dealt with the amalgamation between his company and Dimock and Co. He said they had taken this step with the idea of securing, better control of the bacon industry, and he refuted the statements that the concern was a meat trust, or a proprietary business under another name. Dealing with the previous competition -between, the co-operative company and Dimock and Co., Mr. Burke recalled that the farmers’ concern started with a capital of £9OOO and later got a similar amount as the result of the backing of some influential farmers, who signed a joint and several. At the end of the year the co-op. concern produced their - balance-sheet, as they were compelled; to do, while a proprietary concern* need not—at any rate ?>t to the farmers. The farmers’ business showed a loss of £3OOO on the first year's working, but it only came out later, after the amalgamation, that the 'proprietary business lost £lO,OOO that year. Ho knew that private firms were often prepared to make a loss to put a co-opera-tive business bankrupt, and to-day his company were met with a lot of rumors which could only have been circulated with the idea of damaging the institution in the opinion of the farmer.

Referring to the negotiations which resulted in an amalgamation with Dimock and Co., Mr. Burke denied that the latter firm got anything for goodwill. They sold their plant at -book value, £70,000, and this proved to be a safe estimate, as the firm had written down their assets. This sum of £70,000 had been allowed to remain in the business! at 6 per cent., which could not be increased except and when the company

had paid the suppliers a bonus. The directorate was comprised of ten mem-] bers, six representing the farmers, andfour representing Dimock and Co. The Taranaki delegates were Messrs. T. Bridge (Manaia), J. Forsyth (Eltbam), and J. Marx (Mangatoki), who were well known men.

Reverting to general matters in administration, Mr. Burke dealt with the question of shrinkage in pork, and said, he did not know whether farmers realised the loss in this direction, and they sometimes wanted to know where the, profit was going. He said on a pig of* 2071 b. live weight, 27J per cent, had tb be allowed for shrinkage, leaving 1501 b., from which the carcase Was further reduced by 20 per cent., which left the weight at 1051 b. Shrinkage actually cost about 3d, and there were all tlw other detailed charges to be met, such as cartage, railage, curing, etc. In reply to a point mentioned by the man, Mr. Bfirke said his company had. dealt with the question of paying on a grading system, but did not think a workable system could be evolved.

In urging farmers to assist the cooperative concern by taking up shares, Mr. Burke pointed out, that further capita! was required to put the business on a sound basis. He said better control by the farmers’ concern would xesult in many advantages being gained. The position would need watching this year, as there were 80,000 more pigs than there were last season. These were going to be put on the market, and the company would need capital to regulate the output. He did not think that they need tear over production, however, as New Zealand at present was not producing enough bacon to meet local requirements. The canvass for more share capital, he said, had met with a good deal of success in the \A r aikato and Manawatu districts.

A number of questions were answered by Mr. Burke, and at the conclusion of the meeting he was accorded a, vote of thanks, the mover, Mr. Kurth, expressing the hope that the company, would receive the required support front the district.